On Tuesday, a multibagger public sector undertaking stock surged 4 percent after receiving a work order from the National Institute of Technology, Sikkim (NIT).
With a market capitalization of ₹25,938 crores, National Building Construction Corporation (India) Ltd. (NBCC). The stock rose by 4 percent from the previous close of ₹141.30 per share to an intraday high of ₹147.40 per share.
According to the company exchange filings, NBCC (India) Ltd. received a work order worth ₹560 crores from the National Institute of Technology (NIT) as a normal course of business.
The work order is “Construction of a Permanent Campus of NIT Sikkim at Dung Dung Khamdong, Gangtok, Sikkim.”
On a YoY basis, revenue from operations of the company increased by 14 percent, from ₹2,116.5 crores in Q3 FY23 to ₹2,405.51 crores in Q3 FY24, and in the same period, net profits increased by 59 percent, from ₹71.49 crores to ₹113.57 crores.
Sequentially, on a QoQ basis, the revenue from operations increased by 17.47 percent from ₹2,047.7 crores in Q2 FY24 to ₹2405.51 crores in Q3 FY24, and in the same period, the net profits also increased by 39 percent from ₹81.9 crores to ₹113.57 crores.
As per the investor presentation for November 2023, 92 percent of the company’s revenue comes from Project Management Consultancy (PMC), while the remaining 6 percent comes from Engineering Procurement and Construction (EPC), and 2 percent from Renewable Energy.
It has delivered a return on capital employed (ROCE) of 25.04 percent and a return on equity (ROE) of 20.83 percent in Trailing Twelve Months (TTM).
The shareholders’ pattern of the company shows that 61.75 percent is held by the promoters, followed by 23.90 percent held by the public, and the remaining 10.21 percent is held by Domestic Institutional Investors (DII) and 4.14 percent by Foreign Institutional Investors (FII).
The stock of NBCC (India) Ltd. has delivered multibagger returns of 203.37 percent in six months and 330.99 percent in one year. Therefore, an investment of ₹1,00,000 made a year ago would now be worth ₹4,30,990.
NBCC (India) Ltd. is a public sector undertaking, under the Ministry of Housing and Urban Affairs, headquartered in New Delhi, and has over 31 regional offices across India. It has successfully completed numerous projects, including the redevelopment of government properties, the construction of roads, railway stations, hospitals, medical colleges, institutions, offices, and bridges, as well as industrial and environmental structures.
Written By Praveen R
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